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Last month our team reviewed customer feedback patterns about home buying. One issue kept surfacing: people felt overwhelmed by inspections, not because of property problems, but because they didn't understand what inspectors actually do.
A home inspector serves as your independent expert who examines a property before you commit to probably the biggest financial decision of your life. You wouldn't buy a used car without a mechanic checking under the hood, right? Same concept, bigger scale.
The home inspection industry generated approximately $3 billion in revenue in 2024 and is projected to reach substantial growth, reflecting the increasing importance buyers place on understanding their purchases.
A home inspector conducts a non-invasive, visual examination of a property's accessible areas. They're typically hired during the buyer's due diligence period as part of a home inspection contingency clause.
Approximately 80% of home buyers choose to conduct inspections before purchasing, and when lenders require inspections, that number jumps to 83%.
In my MSW program, we learned about evidence-based decision making—how concrete information beats gut feelings. Here's the data.
According to industry sources compiled in 2024-2025:
Finding problems during inspection is normal and expected, not a sign the home has "failed." What matters is understanding which issues are serious versus routine maintenance.
Inspectors examine basements for moisture intrusion, structural cracks, foundation settling, and water damage. This includes subtle indicators like efflorescence (white chalky deposits on concrete), hairline cracks suggesting movement, and musty odors signaling hidden moisture.
Foundation issues represent some of the most expensive repairs. Your foundation literally holds up your entire house—any compromises create cascading problems throughout the structure. Inspectors also evaluate drainage systems, sump pumps if present, and ventilation.
In attic spaces, inspectors verify vents function correctly and structural elements show no stress or damage. Poor attic ventilation can cause premature roof deterioration.
Inspectors examine the main electrical panel, verifying circuits are properly labeled, breakers are appropriately sized, and there's no evidence of overheating or improper wiring. They test GFCI outlets in wet areas and AFCI protection in bedrooms.
Both ASHI and InterNACHI standards require inspectors to identify visible safety hazards and report on electrical system conditions. However—wait, this is important—inspectors don't predict how long systems will last or guarantee they won't fail.
Inspectors evaluate water supply lines, drain systems, water heaters, and fixtures. They look for active leaks but also conditions suggesting future problems: corroded pipes, inadequate water pressure, slow drains indicating partial blockages, and outdated materials like polybutylene piping.
Water heaters receive particular attention. Inspectors verify proper installation, check for leakage, ensure temperature and pressure relief valves function, and confirm adequate ventilation for gas units. They document the unit's age, which matters because—actually, let me back up a second. The age matters for planning purposes since these systems don't last forever, though predicting exact lifespan is difficult since it depends on water quality, maintenance, and usage patterns.
In bedrooms, inspectors verify windows and doors operate correctly, test electrical outlets and switches, and look for moisture damage signs on ceilings and walls. They check for proper egress (emergency exits), which affects safety.
Bathrooms get scrutinized for proper drainage, functional fixtures, adequate ventilation, and water damage signs. Bathrooms are high-moisture environments where hidden damage often shows as soft flooring spots, loose tiles, or ceiling staining.
In kitchens, inspectors test appliances to verify operation. This includes ranges and ovens (checking burners heat), running garbage disposals, testing dishwashers, and verifying refrigerators maintain cold temperatures. They examine cabinets, countertops, and flooring for water damage around sinks and appliances.
HVAC systems typically represent one of the most expensive components, with replacement costs often ranging $5,000-$15,000+ depending on system type and home size.
HVAC Replacement Cost Calculation Example:
Inspectors evaluate systems for proper operation, adequate maintenance, and expected remaining lifespan. Common problems include clogged filters, malfunctioning thermostats, refrigerant leaks, and worn motors or heat exchangers.
Inspectors examine siding materials for damage, deterioration, or improper installation. They check for adequate clearance between soil and siding (typically 6 inches minimum) to prevent moisture wicking and wood rot.
Roofing inspections are particularly important, as roof issues are identified in approximately 70% of home inspections. Inspectors evaluate roofing materials, checking for missing or damaged shingles, inadequate or damaged flashing, and signs of wear suggesting the roof nears end of life.
Gutters and downspouts get checked for proper installation, adequate slope, and effective water direction away from foundations. Improper drainage causes many expensive problems: foundation damage, basement flooding, and landscape erosion.
Home inspections have defined limits. These are visual assessments of accessible areas performed by generalists, not comprehensive examinations of every component.
Pools and Hot Tubs: General inspectors might identify visible damage but don't test pumps, heaters, or chemical balance. These require pool specialists.
Solar Panel Systems: Inspectors don't assess solar panel efficiency, electrical connections, or inverter performance. These need licensed solar technicians or electricians with photovoltaic training.
Fireplace and Chimney Systems: Inspectors check for obvious damage but cannot evaluate internal chimney conditions, creosote buildup, or structural integrity of chimney liners. These require certified chimney sweeps with specialized cameras.
Underground Infrastructure: Buried plumbing lines, sewer laterals, and septic systems cannot be evaluated through visual inspection. These require specialized camera equipment for sewer lines (sewer scope inspections, typically $200-400 additional) or professional septic evaluations (usually $300-600).
Behind-Wall Components: Inspectors cannot see wiring, plumbing, insulation, or structural elements hidden behind finished walls without invasive methods like opening walls, which they're not permitted to do.
Standard inspections don't include toxic material testing. These require specialized inspections:
State laws vary but generally prohibit inspectors from certain activities:
Approximately 90% of home inspectors carry errors and omissions insurance, providing some protection if they miss significant defects. However, insurance doesn't eliminate inherent limitations of visual, non-invasive inspections.
Special inspections are targeted evaluations using specialized equipment, training, or laboratory analysis to assess particular systems or potential hazards.
Termite and Wood-Destroying Insect Inspections: Required by many lenders, these inspections (typically $75-150) use specialized tools to detect insect activity and assess structural damage.
Sewer Scope Inspections: Using specialized cameras, technicians examine underground sewer line conditions from the home to street connection. This inspection (usually $200-400) identifies blockages, root intrusion, pipe deterioration, or improper slope causing recurring backups.
Chimney Inspections: Level 1 inspections (typically $150-250) examine readily accessible portions, while Level 2 and 3 inspections use cameras and may require partial chimney disassembly.
Septic System Inspections: For homes with septic systems, these inspections (typically $300-600) evaluate tank integrity, drain field function, sludge levels, and overall system capacity. Failures can cost $5,000-20,000 to repair or replace.
Structural Engineering Evaluations: When inspectors identify concerning foundation movement, significant cracks, or structural issues, licensed engineers provide detailed analysis. These evaluations typically cost $500-1,500.
Finding an inspector you can trust is important for your peace of mind and to protect your money because the buyer usually pays for the inspection.
As of 2025, 36 states will require home inspectors to have a license. California, Colorado, Georgia, Hawaii, Idaho, Iowa, Kansas, Maine, Michigan, Minnesota, Missouri, Nebraska, Utah, and Wyoming do not require licenses.
The two most well-known certifications are:
To become an ASHI Certified Inspector (ACI), you must pass the National Home Inspector Examination (a 200-question, 4-hour proctored test), complete ASHI's Standards of Practice and Code of Ethics training, and show that you have done 250 paid inspections that meet ASHI standards. The National Commission for Certifying Agencies only recognizes ASHI certification as a valid home inspector credential.
To become an InterNACHI Certified Professional Inspector (CPI), you must pass an online test, take courses on the Code of Ethics and Residential Standards of Practice, and either show proof of experience or send in sample reports. Members of InterNACHI can take more than 1,000 hours of free online classes.
About 58% of people who buy homes choose inspectors based on their real estate agent's advice, and 14% choose inspectors based on advice from friends or family. Agent suggestions are often based on trusted working relationships, but you should check the inspector's qualifications on your own.
About 72% of people only look at one inspector before ordering an inspection, which means that most buyers are sure of their first choice.
For average-sized homes, the inspection usually takes two to three hours. However, larger homes or homes with complicated systems may take longer.
The inspection contingency usually gives you 7 to 14 days to do inspections and either accept the property as-is, negotiate repairs or credits, or maybe even pull your offer.
About 46% of buyers use what they find during an inspection to get the seller to lower the price or fix things. Focus your negotiations on important issues that have to do with safety, major systems, or the integrity of the structure.
About 20% of buyers who are successful don't have home inspections done to make their offers more competitive, especially in hot markets. Most buyers, on the other hand, still have inspections, so it's worth it for sellers to get ready.
These small repairs usually cost less than $200 and show that you care about your property.
Not all of the things that an inspection finds are the same. Knowing how to put things in order of importance is very important for negotiations and for owning a home in the long run.
Most of the time, professional inspection reports group their findings into these categories:
Immediate Safety Hazards: Problems that need to be fixed right away before people can move in, like exposed electrical wiring, gas leaks, stairs that are badly broken, or buildings that are not stable. Take care of these right away, no matter how you plan to pay for them or how many people will be living there.
Major Defects: Serious issues with major systems or structural parts that need to be fixed by a pro. Some examples are HVAC systems that don't work, roofs that are close to the end of their useful life, cracks in the foundation that could mean movement, or plumbing systems with more than one leak. These usually cost between $1,000 and $20,000 or more, and they should be a big part of the negotiations to buy.
Minor defects are problems that need to be fixed but aren't as urgent or expensive. Some examples are old fixtures, worn weatherstripping, small cracks in the grout, or drains that are slow. Fixing these usually costs less than $1,000.
Maintenance Suggestions: Things that don't need to be fixed but would benefit from regular care, like cleaning the gutters, servicing the HVAC system once a year, or keeping the caulk in good shape.
Notes with information: Things you notice about the age, materials, or configurations of a system that don't need to be acted on but are helpful for planning in the future.
Knowing how much repairs usually cost helps you look at inspection results in a realistic way:
When I plan projects for our team, the best results happen when everyone knows everything before they agree to do something. The same rule applies to buying a home. Home inspections give you all the information you need.
The numbers make this very clear. The average inspection cost of $377 is one of the best investments you can make when buying a home because about 86% of inspections find at least one problem, and buyers negotiate an average of $14,000 off the price or in credits based on what they find. On average, that's about a 40-to-1 return.
Inspections give you more than just peace of mind; they also help you with your finances. Buying a house is a big step in life and a big financial commitment. Knowing the real state of your property, what's new and what will need work soon, and what maintenance tasks are most important to you will help you move forward with confidence.
The home inspection business is always changing. For example, thermal imaging cameras can find temperature differences that could mean insulation gaps or water leaks. Drone photography can be used to inspect roofs that are too steep or dangerous, and digital reports are getting more detailed with photos and videos.
Professional inspection gives you an unbiased evaluation that helps you make a decision, whether you're buying your first home, your fifth home, a brand-new home, or a home that's been around for a hundred years. Make sure you hire an inspector who is experienced, properly certified or licensed, adequately insured, and knows about the type of property you have by working with your real estate agent.
The goal isn't to find the perfect home because there is no such thing. The goal is to find out what condition your potential home is really in so you can make smart choices about whether to go ahead, what to negotiate, and how to plan for future repairs and maintenance.
The average cost of a standard home inspection in the U.S. in 2025 is about $377, but prices usually fall between $200 and $500. Several things affect the price, such as the size of the house (larger homes take longer and cost more), the age of the property (older homes often need more detailed evaluations), how easy it is to get to the components (difficult attic or crawl space access may raise costs), and where the property is located (inspection costs tend to be higher in cities). Radon testing ($150–300), sewer scoping ($200–400), and termite inspections ($75–150) are examples of other specialized inspections that cost more. Some inspectors charge extra for same-day or rush services. Keep in mind that buyers usually negotiate an average of $14,000 off the price of a house based on what the inspection finds. This means that the inspection fee is a good investment that often pays for itself many times over.
There are many benefits to going to your home inspection in person that you can't get by just reading reports. The inspector can show you problems and explain why they are important right then and there, which is better than reading descriptions later. You can ask questions right away if something isn't clear instead of trying to figure out what it means later. The inspector can show you how to take care of systems correctly, where to find shutoff valves in case of an emergency, and how to use equipment you might not be familiar with. You can better tell if the problems you find are serious or not, which helps you decide which repairs to make first. Most inspectors want and encourage buyers to be there because it makes sure you know everything about the property you're thinking about buying. Plan to spend the whole inspection time (usually two to three hours) and bring a notebook to take notes in addition to the official report you'll get later. The only times you might not be able to go are if you bought something online or if you have a scheduling conflict that you can't avoid. Some buyers still ask a trusted friend or family member who knows about construction to come and give them a second opinion in addition to the written report.
The American Society of Home Inspectors (ASHI) and the International Association of Certified Home Inspectors (InterNACHI) are the two most well-known professional groups for home inspectors. They both have strict standards, but they go about them in different ways. Founded in 1976, ASHI is the older group and has the honor of being the only home inspector certification that the National Commission for Certifying Agencies recognizes. To get ASHI certification, you have to pass the National Home Inspector Examination, which is a four-hour, 200-question test that is given by a proctor. You also have to complete training on ASHI's Standards of Practice and Code of Ethics, and you have to show proof of at least 250 paid inspections that meet ASHI standards by sending in sample reports. InterNACHI, which was started in 1990, is actually the biggest organization in the world. It focuses on making things easy to access and providing a lot of online education resources. To get InterNACHI certification, you have to pass their online test, finish the Code of Ethics and Standards of Practice coursework, and either show proof of experience or send in sample reports. InterNACHI has more than 1,000 hours of free online training and many specialized certification programs in areas like infrared thermography, radon testing, and mold inspection. From a practical point of view, both certifications show that the inspector has met high professional standards and is required to keep learning. The most important things to look for in an inspector are how much experience they have, how long they've been doing inspections, whether they have enough errors and omissions insurance, and how clear and detailed their reports are.
What you have to do depends on the terms of your purchase agreement, especially if you included an inspection contingency clause. An inspection contingency gives you a set amount of time, usually between seven and fourteen days, to inspect the property. After that, you can either go through with the purchase as-is, negotiate repairs or price cuts with the seller, or even back out of the deal without losing your earnest money deposit. This clause protects buyers from having to buy homes with major problems that they didn't know about when they made their offers. If you put this condition in the contract and the inspection shows that there are problems, you have a few choices. You can ask the seller to make certain repairs before closing, ask for a lower price to cover the costs of repairs you'll have to make after the sale, ask for a credit at closing to cover the costs of repairs, or, in very serious cases, you can choose to back out of the purchase agreement. But if you gave up the inspection contingency to make your offer more competitive in a hot market, you usually have to go through with the sale no matter what the inspection says, or you could lose your earnest money deposit. In about 20% of competitive market situations, buyers do give up inspection contingencies, but this is very risky. Your real estate agent should help you decide what to ask for based on what's normal in your area. The way you go about it should depend on how serious the problems are and how competitive the market is.
Home inspections don't use a pass or fail grading system like vehicle emissions tests or building code inspections do. Instead, home inspectors write detailed reports that describe the state of systems and parts that are easy to get to, point out any problems that are currently present, and suggest ways to fix them. According to data from the industry, about 86% of home inspections find at least one problem that needs to be fixed. This means that finding problems is normal and expected, not a sign that the home has failed. People often mix up the idea of passing or failing with getting a loan approved, which is not the same as the inspection itself. Some mortgage programs, like FHA, VA, or USDA loans that are backed by the government, require homes to meet minimum safety, security, and soundness standards before lenders will give them money. For instance, FHA loans require that all major systems work properly, that the property has enough heating, that the electrical systems are safe, that the foundations and roofs are structurally sound, that people can get to and from the property easily, and that there are no health or safety risks. If an inspection finds problems that don't meet these minimum property standards, the lender may require repairs before the loan is approved. This is because the loan doesn't meet the requirements, not because the inspection itself fails. Most problems found during inspections can be worked out through negotiation between the buyer and seller. Common solutions are for the seller to make repairs, lower the price to cover the buyer's repair costs, or give the buyer closing credits so they can make repairs after the sale. Most homes aren't perfect, and inspection reports only show the current state of the home. Most problems can be fixed through reasonable negotiation based on how bad they are and how much it will cost to fix them.
The thorough inspection you do before you buy a home is important for knowing what you're getting, but regular inspections after you buy the home also offer different but useful benefits. Most homeowners don't do regular whole-house inspections like pre-purchase inspections, but they do benefit from seasonal maintenance reviews and system inspections at the right times. It makes sense to have annual preventive maintenance checks on important systems like your HVAC system (ideally serviced each spring for cooling and fall for heating), chimney and fireplace (especially if you use them often), roof and gutters (especially after bad weather), and septic system (if you have one, usually every three to five years for professional pumping and inspection). Some homeowners do their own seasonal walkthroughs every spring and fall to look for cracks in the foundation, signs of water getting in, roof damage, gutters that need to be cleaned, caulking around windows and doors, and appliances that aren't working. There are some times when you might want to hire a professional to do a re-inspection. For example, before a big renovation project to get a better idea of the current state of things, if you notice new worrying signs like foundation cracks or water stains, before putting your home up for sale (a pre-listing inspection can help you fix problems before they become bigger), or after a big weather event like a hurricane, tornado, or major storm that could have caused damage. One good thing about regular inspections is that they help you find small problems before they turn into big, expensive repairs. Also, keeping good records of how your home has changed over time is helpful for insurance claims if damage happens and for showing that you took care of it when you sell it.
Different states have different rules about what kind of insurance home inspectors need. About 90% of professional inspectors have errors and omissions insurance, even though they don't have to. Errors and omissions insurance, also known as professional liability insurance, protects you financially if an inspector makes a mistake or misses a big problem that costs you money. If you file a claim against the inspector, this type of policy usually pays for legal defense costs, settlement or judgment amounts up to the policy limits, and other legal costs. Limits on coverage vary, but they usually range from $100,000 to $1,000,000 for each event, with annual limits that could be twice the per-event amount. Some states that require licenses also require minimum insurance coverage. For example, they might require at least $100,000 in liability coverage or a bond. In addition to errors and omissions insurance, many inspectors also have general liability insurance that covers things like if the inspector accidentally breaks a window, damages the flooring, or causes other physical damage to your property during the inspection, or if someone gets hurt on the property during the inspection. When looking at possible inspectors, ask them if they have insurance, what the limits of their coverage are, who their insurance company is, and if their policy is still in effect. Good inspectors should be able to easily give you this information. However, insurance has some limits. For example, policies usually don't cover problems that couldn't be seen during a visual inspection, problems that are specifically listed in the contract as not being covered by the inspection, or problems that happen after the inspection date.
It's understandable that you would feel frustrated when you find a big problem right after closing that wasn't found during your inspection. The first thing you should do is carefully read your inspection report to make sure that the problem was actually missed or that it was mentioned but not made clear enough. Sometimes buyers miss things that are mentioned in reports, especially if the reports are long and have a lot of findings. If you find that the problem really wasn't found, make sure to document it well with pictures and written descriptions, including when you first noticed it and what symptoms or damage it caused. Next, get in touch with your inspector and talk about the situation in a professional way. Many inspectors will come back to the property to look at the new problem and give you their professional opinion on why it wasn't seen during the first inspection. Some problems can't be found during non-invasive visual inspections, which is why inspection agreements usually say that the inspector is only liable for conditions that were reasonably observable. But if the inspector should have found and reported the problem, you might be able to file a claim against their errors and omissions insurance. Usually, you have to write a claim to the inspector that explains the problem, the damage you caused, and why you think the inspector should have found it. Then, the inspector tells their insurance company about the claim, and the insurance company looks into it and decides if coverage applies. There are a lot of things that make it hard to hold an inspector liable, such as whether the problem was easy to see during the inspection, whether the inspector looked at the area where the problem is, whether the problem might have gotten worse or developed after the inspection date, and what the real cause of the problem is. In practical terms, inspector liability is usually limited by contract to the amount you paid for the inspection (usually only a few hundred dollars), but insurance may help you get more money back. Before going to court, many inspection agreements also require mediation or arbitration.
People often think that builder warranties and code compliance are enough for new construction homes, but they really do need professional inspections. Builder warranties usually cover certain defects for a short time, like one year for workmanship and materials, two years for mechanical systems, and ten years for structural defects. However, these warranties have exclusions and may not cover all possible problems. Warranties are only useful after you've bought the house and moved in. Pre-closing inspections, on the other hand, find problems before you own the house, when you have the most power to get them fixed. Municipal inspectors check for code compliance and safety during building code inspections. These are the minimum standards, not the best practices or quality of work. Municipal inspectors also usually only look at properties at certain stages of construction instead of looking at the whole thing when it's done. New homes often have problems like grading and drainage that aren't done right, HVAC systems that aren't the right size or weren't installed correctly, insulation that is missing or not enough in some places, plumbing connections that leak or weren't secured properly, electrical outlets or switches that don't work, windows or doors that don't open or close properly, and cosmetic problems with finishes, cabinets, or flooring. Reports from inspectors say that it's not uncommon to find ten to fifteen things that need to be fixed, even in newly built homes from well-known builders. The best times to inspect new construction are during construction, before the drywall goes up, when you can see the framing, electrical, and plumbing, and again before you close on the finished home. To be as safe as possible, some buyers have three inspections: one at the foundation stage, one before the drywall goes up, and one at the end.
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